What is the difference between alpha and beta in crypto?

The CORE distinction in measurement emphasis lies in the fundamental approach of Alpha and Beta. Alpha assesses the performance of an investment by gauging its excess return, which is the amount of profit earned above and beyond what was anticipated given its inherent risk profile.

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This focus on excess return underscores Alpha's emphasis on outperforming benchmarks and expectations, providing investors with a metric to evaluate the active management capabilities of their portfolios.

Conversely, Beta measures the responsiveness of an investment's returns to fluctuations within the broader market. It captures the sensitivity of an asset's price movements to those of the market as a whole.

Beta, therefore, serves as an indicator of an investment's systemic risk, revealing how closely its performance aligns with market trends. A higher Beta indicates greater volatility and a tighter correlation with market movements.